Q2 Earnings Estimate for Home Depot Issued By Zacks Research

Key Points

• Zacks Research slightly lowered Home Depot’s Q2 2027 EPS estimate to $4.70 from $4.73 and kept a Hold rating, signaling somewhat softer expectations for future earnings growth.
• Home Depot’s latest reported quarter beat estimates, with EPS of $3.43 versus $3.41 expected and revenue of $41.77 billion, up 4.8% year over year. The company also reaffirmed FY2026 guidance of $14.69–$15.28 EPS.
• Analyst sentiment remains mixed but constructive: the stock has 20 Buy ratings, 12 Holds, and 1 Sell, with a consensus Moderate Buy and average price target of $371.39.

The Home Depot, Inc. (NYSE:HD - Free Report) - Equities researchers at Zacks Research reduced their Q2 2027 earnings per share estimates for shares of Home Depot in a note issued to investors on Friday, May 29th. Zacks Research analyst Team now expects that the home improvement retailer will post earnings of $4.70 per share for the quarter, down from their previous forecast of $4.73. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Home Depot's current full-year earnings is $15.02 per share. Zacks Research also issued estimates for Home Depot's Q3 2027 earnings at $3.95 EPS, Q4 2027 earnings at $2.87 EPS, FY2027 earnings at $14.95 EPS, Q1 2028 earnings at $3.76 EPS, Q2 2028 earnings at $5.05 EPS, Q3 2028 earnings at $4.27 EPS, Q4 2028 earnings at $3.15 EPS, FY2028 earnings at $16.23 EPS, Q1 2029 earnings at $4.13 EPS and FY2029 earnings at $17.62 EPS.

Home Depot (NYSE:HD - Get Free Report) last announced its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, topping the consensus estimate of $3.41 by $0.02. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.The firm had revenue of $41.77 billion for the quarter, compared to the consensus estimate of $41.59 billion. During the same period in the previous year, the business earned $3.56 EPS. The firm's revenue for the quarter was up 4.8% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS.

HD has been the topic of several other research reports. JPMorgan Chase & Co. dropped their price target on Home Depot from $423.00 to $396.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 20th. Bank of America began coverage on Home Depot in a research note on Tuesday, May 5th. They set a "buy" rating and a $374.00 price target on the stock. UBS Group dropped their price target on Home Depot from $450.00 to $430.00 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. Argus dropped their price target on Home Depot from $425.00 to $400.00 and set a "buy" rating on the stock in a research note on Thursday, May 21st. Finally, Mizuho dropped their price target on Home Depot from $415.00 to $385.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 20th. Twenty analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $371.39.

Home Depot Stock Up 0.1%

Shares of HD stock opened at $317.41 on Monday. Home Depot has a 1-year low of $289.10 and a 1-year high of $426.75. The stock's fifty day moving average price is $324.70 and its 200 day moving average price is $349.61. The company has a debt-to-equity ratio of 3.23, a current ratio of 1.04 and a quick ratio of 0.28. The company has a market cap of $316.49 billion, a price-to-earnings ratio of 22.54, a price-to-earnings-growth ratio of 3.66 and a beta of 0.97.

Home Depot Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th will be issued a $2.33 dividend. This represents a $9.32 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Thursday, June 4th. Home Depot's payout ratio is 66.19%.

Insider Activity

In other news, CFO Richard V. Mcphail sold 2,550 shares of the business's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total value of $940,669.50. Following the completion of the transaction, the chief financial officer owned 44,566 shares of the company's stock, valued at $16,439,951.74. The trade was a 5.41% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.08% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Home Depot

Several institutional investors and hedge funds have recently modified their holdings of HD. Advocate Investing Services LLC acquired a new position in shares of Home Depot in the 4th quarter valued at about $25,000. Parvin Asset Management LLC lifted its holdings in shares of Home Depot by 110.0% in the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after buying an additional 33 shares during the period. Cache Advisors LLC acquired a new position in shares of Home Depot in the 1st quarter valued at about $27,000. Key Capital Management INC acquired a new position in shares of Home Depot in the 4th quarter valued at about $28,000. Finally, Merkkuri Wealth Advisors LLC acquired a new position in shares of Home Depot in the 1st quarter valued at about $28,000. Institutional investors and hedge funds own 70.86% of the company's stock.

Key Headlines Impacting Home Depot

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Home Depot is expanding store-based services by testing on-site car key duplication through a partnership with KeyMe Locksmiths, which could deepen customer relationships and support more traffic and cross-selling in stores. Home Depot Tests On Site Car Key Service To Deepen Store Relationships
• Neutral Sentiment: JPMorgan-style market commentary and a broader “home improvement stocks” roundup suggest investors are still watching the sector closely, but this looks more like a reference piece than a direct catalyst for Home Depot. Top Home Improvement Stocks To Follow Today - May 28th
• Negative Sentiment: Zacks Research trimmed several forward EPS estimates for Home Depot, including FY2027, FY2028, FY2029 and multiple quarterly forecasts, while keeping a “Hold” rating. That points to slightly softer expectations for future earnings growth.
• Negative Sentiment: Jim Cramer singled out Home Depot as one of the market’s “legitimate disappointments,” tying weaker performance to rising interest rates, which can weigh on home-improvement demand and investor sentiment. Jim Cramer on Home Depot: “I Was Honestly Bracing for the Worst Here”

About Home Depot

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

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